If you are looking to open a certificate of deposit (CD) account, People’s United Bank offers many different term lengths and no minimum deposit requirements. Although the majority of the rates offered are less than competitive with the best CD rates out there, rates for 12-month and 24-month CDs are both at 2% or above, making them attractive options.
Customers are able to open accounts online, but with nearly 400 branches in Connecticut, Massachusetts, Vermont, New York, New Hampshire and Maine, you’re very likely to be near a branch if you live in the Northeast. Rates and available term lengths can vary depending on which branch you visit. For the purposes of this article, we’ll be referring to the rates and term lengths available to those who open an account online.
|Term Length||Minimum Deposit||APY|
|91 Day Plus CD||$0||0.15%|
|4 Month CD||$0||0.15%|
|5 Month CD||$0||0.15%|
|6 Month CD||$0||0.15%|
|7 Month CD||$0||0.15%|
|8 Month CD||$0||0.60%|
|9 Month CD||$0||0.15%|
|10 Month CD||$0||0.20%|
|11 Month Plus CD||$0||0.80%|
|12 Month Plus CD||$0||0.25%|
|15 Month Plus CD||$0||0.25%|
|18 Month Plus CD||$0||0.35%|
|24 Month Plus CD||$0||0.40%|
|36 Month Plus CD||$0||0.90%|
|48 Month Plus CD||$0||0.70%|
|60 Month Plus CD||$0||0.80%|
91-Day CD Interest Rate Comparison
Overview of People’s United Bank CD Rates
People’s United Bank offers a wide variety of term lengths ranging from three months to five years. The abundance of options makes it an attractive destination for those looking to set up a CD ladder and receive payouts at semi-regular intervals. You have the option of opening a CD account online or going to a physical branch location, although specific rates may vary from location to location.
If you need to withdraw your money before the maturity date of your CD, then you will have to pay an early withdrawal penalty, which can be fairly substantial depending on your term length. For term lengths of 7 to 31 days (these are not available online), your penalty will be all the interest you would have earned on the amount you’re withdrawing. For term lengths of 32 to 365 days, your penalty will be 1% of the amount you’re withdrawing plus $25. So, let's say you opened a 12-month CD with a deposit amount of $3,000. If you needed to withdraw $1,500 after six months, you would pay a penalty of $40.
If your term length is longer than one year, you’ll pay a penalty of 3% of the amount you’re withdrawing plus $25. For example, if you were to make a $5,000 deposit in a 24-month CD and then withdraw $3,000 after a year, you would face a penalty of $115.
Once your CD reaches maturity, you will begin a grace period of 10 days, during which you may withdraw your money without penalty and either hold on to it or place it in a CD with a different term length. If you do nothing, the bank will renew you for a CD of the same term length as the one that just matured.
How Much You Earn With a People’s United Bank CD Over Time
Because 12-month and 24-month term lengths have higher interest rates than the longest terms available, there is little incentive for you to choose longer terms. In fact, you would earn $548.88 more in interest by purchasing a 12-month CD and renewing it four times than you would by purchasing a 60-month CD.
Interest on CDs compound continuously, and interest is credited to your account monthly. Once your interest is credited to you, you can withdraw it from your account. Keep in mind, however, that this will limit the amount of total interest you can earn, as you will be keeping some of your interest from earning its own interest. Note that the below figures were calculated assuming that no interest is withdrawn during the term.
|Initial Deposit||91 Day Plus CD||12 Month Plus CD||60 Month Plus CD|
How People’s United CD Rates Compare to Other Banks'
A CD account with People’s United Bank will net you more in interest than a CD at a large, national bank like Chase, especially if you choose a 12-month or 24-month term. Consequently, People’s United could be a good option to consider for in-person bankers. That said, you can still find more competitive rates with an online establishment like Ally, specifically if you're looking at term lengths on the very short and very long end of the spectrum.
|Term Length||People's United||Chase||Ally|
Compare People’s United Bank to Other Competitive Offers
Should You Get a People’s United CD Account?
If you already have a People’s United checking account and you can access slightly higher rates, then a People’s United CD could be an attractive option to consider. If you are flexible about term lengths, then you should choose either a 12-month or 24-month term, as those two rates are significantly higher than any others.
If you are looking to purchase a longer term length, then you will probably be able to find a more competitive rate elsewhere, especially if you’re comfortable banking online. Make sure to read up on all options so you’re aware of any fees that may apply.